Portland Condominiums… How’s the Market?
Economics 101: Supply and Demand
How’s the Portland condominium market? If you are waiting for lower prices in the condo market… that train has left the station! A year ago would have been the best time to purchase. But, like picking the bottom in any market, timing is difficult. Let’s look at where we are now and where I think we are going… again, these are my opinions only but they are based on the research of many others.
Like many parts of the country, we are now in a situation of low inventory and buyer demand has picked up tremendously. Again, getting back to the basics of supply and demand. When you have limited inventory being chased by multiple buyers in the marketplace, prices will go up and they have already started! Will we see the huge appreciation of past years? I don’t believe so. I believe we will see steady, healthy growth moving forward. National levels are expected to see growth of 3-5% a year for the next several years. I believe Portland will be just slightly higher in the 5-7% range.
What’s happening in our markets. For Portland’s condo markets, same thing… no inventory! Why is this? Well, I think it is a couple of things. Many people are still underwater on their condo and waiting for a little appreciation before they can sell. With no inventory this is what will happen. Prices will begin to start going up and as they do, more condo owners will be able to sell. The other issue in the condo market that I am seeing is that the rental market has been so strong and rentals are at a premium, thus keeping more condos out of the market place.
With that said, many condo owners live in buildings where there is a 30% rental cap… and guess what? They are all at the cap! In fact, some buildings like Streetcar Lofts have a long waiting list (Streetcar has 21 people on the waiting list!). These are the owners who are waiting for some appreciation so that they can sell, because they can’t rent their condo.
If you are a condo owner who is thinking about selling, give us a call and we will be happy to do a market analysis for you to see where you might be and to see what other units like yours are selling for. We have put together what we believe is the best condo marketing program in the city and we would love to share this with you. It is remarkable how much mediocrity we live with when it comes to selecting an agent to help sell your condo. If you want top dollar for you condo, average should not be acceptable, you deserve more for your hard earned money…and this is something we truly believe!